Once again, the people who caused the problem are quick to come
forward with solutions.
forward with solutions.
This time it is the Debt Commission which was created earlier this
year to provide recommendations to reduce the debt our country
has incurred in the last two years.
year to provide recommendations to reduce the debt our country
has incurred in the last two years.
In a nation addicted to spending without regard for where the money
is coming from or how it can be repaid it should be no surprise the
position we find ourselves in.
is coming from or how it can be repaid it should be no surprise the
position we find ourselves in.
But, to believe these people are capable to curb their addiction
demands on more than what this commission is proposing.
demands on more than what this commission is proposing.
Even now Congress circumvents legislation which requires it to
"pay as we go" to spend more than we have. So whatever legislation
gets enacted provides little confidence anything will change.
"pay as we go" to spend more than we have. So whatever legislation
gets enacted provides little confidence anything will change.
For Congress to go through the recommendations and pick whichever
can be passed will do little to strengthen the economy. The problem is
worse than reducing our debt by any amount, it requires much more.
can be passed will do little to strengthen the economy. The problem is
worse than reducing our debt by any amount, it requires much more.
To look at a total debt, in the billions, and select a target, 1,2,5 billion
in reduction may look good in theory, but what actually happens when
you implement policy must be considered.
in reduction may look good in theory, but what actually happens when
you implement policy must be considered.
The primary driver to debt reduction is revenue growth which occurs
when more people are employed, which occurs when more businesses
hire, which occurs when there is a greater demand for goods and services.
when more people are employed, which occurs when more businesses
hire, which occurs when there is a greater demand for goods and services.
None of the recommendation I have seen will engage this driver and we
will remain dependent on the discipline of the people we elect, something
which rarely occurs and mostly disappoints.
will remain dependent on the discipline of the people we elect, something
which rarely occurs and mostly disappoints.
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